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Boris Johnson advises workers to accept wage cuts or UK faces 1970s-style ‘stagflation’

Employees will have to be satisfied for real-terms pay cut if UK avoid Boris Johnson warns against stagflation and 1970s-style interest rate hikes.

In a big speech prime minister made an astonishing turn on Promise – made just months ago – to create a highly paid economy, instead emphasizing the pain come from rising inflation.

“We can not fix growth in in cost of life just by raising wages to match surge in prices,” Johnson said. in the speech is announced as latest reload of his restless premiership.

He said: “If wages are constantly chase growth in prices, we risk wage-price spiral how this country has gone through in 1970s. Stagflation is inflation combined with stagnant economic growth.

“When wagesprice the spiral begins, there is only one cure and that is, slam on the brakes on rising Prices with higher interest rates.

“It has a direct impact on mortgage and rent. It puts up in cost of borrowing for business is bad for investment and growth bad for jobs are bad for each.”

prime minister blamed Ukraine for the war for “brutally interrupting” the rebound back from covid, also dashing hopes of early tax cuts or higher expenses for help struggling families.

He pointed to ” risk of borrows too much”, telling his audience in Blackpool: “When you face inflationary pressure, you can’t just spend your way out of It.

On the contrary, one must be careful not to add to inflationary pressure. We are limited in what we can do.”

deputy general secretary of TUC angrily rejected call for wage cuts as “bullshit”, arguing that only wage increases can provide “financial safety”.

“It didn’t take long for in prime minister abandon their commitment to high wages economy” said Paul Novak.

“British workers are suffering from the longest wage cut ever in more than 200 years. They are urgent need more money in their pockets.”

prime ministers call comes just weeks after #10 got slapped down Andrew Bailey, Governor of bank of England, for saying that workers must agree to a wage cap in order to help control inflation.

Mr Johnson described the target of speech, which emphasizes thatprice the pressure will make things hard for for a while, but we’ll manage.”

But apart from the widely criticized ideas of increasing home property, it had no other new measures other than a hint that the tariffs will removed on imported products such as olive oil and bananas.

Mr. Johnson appears to have dismissed suggestion that he is planning a 2d pre-election income tax cut and missed two opportunities to get tough. with firms are refusing pass on fuel duty cuts on pumps.

When asked why the UK sank to the bottom of in the world economic growth league table, he argued, Great Britain “came out” of COVID-19 first, which meant “slightly out of synchronize” with other economies.

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Adrian Ovalle
Adrian Ovalle
Adrian is working as the Editor at World Weekly News. He tries to provide our readers with the fastest news from all around the world before anywhere else.

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